Arizona Title Company
If you are getting ready to purchase a home, you may want to consult an Arizona title company. A title company is responsible for ensuring that the title to a home is legitimately given to the home buyer. Here are some of the most common title issues that can occur during real estate transactions:
Property lien
If the previous homeowner has outstanding debt, creditors can put a lien on the house. If you buy the home, you will be responsible for paying the debt. While this may seem unfair, it’s how it works. That is why you should have a title company perform a title search as soon as possible. They can discover liens before you close on the property.
Unknown heirs
After a person dies, his or her heirs may have rights to the decedent’s property. However, sometimes these heirs are unknown or missing at the time of death. Unfortunately, this could jeopardize your property rights.
Unknown easements
Even if you legally own a home and the land surrounding it, an unknown easement could prevent you from using it the way you want. For example, it might prohibit you from expanding your home in the future. A title company can find all of this out for you during a title search.
Clerical errors
Believe it or not, title problems can occur due to simple clerical errors. For example, a person’s name may be spelled incorrectly or not indexed properly. To avoid headaches down the road, you should hire an Arizona title company to perform a title search promptly.
Forged documents
Unfortunately, there are some dishonest people in this world. If any document relating to the ownership of a property is forged, it could severely harm your property rights. That is another good reason to work with a reputable title company. They will make sure that no forged documents exist before your closing date.
Impersonating a homeowner
As difficult as it may be to believe, some people actually take the name and identity of another homeowner to sell their property. If this occurs, the sale of the property will be void and you won’t have rights to the home anymore. Have a title company perform a title search to prevent this type of nightmare from happening.
Schedule a consultation with an Arizona title company. Contact Closeline Settlements today.
Definition of Title Insurance
Title insurance refers to a type of insurance that protects lenders and homebuyers against title issues after the title search has been conducted. If an issue arises after the title search has been done, such as an unknown heir or conflicting will, the insurance can resolve the claim.
One of the positive aspects about title insurance is that you only have to make one payment at closing. You also have the option of buying extended coverage, which protects you against issues like building permit violations and zoning law violations.
Different Types of Title Insurance
The two types of title insurance are owner’s and lender’s title insurance. A lender’s policy protects the mortgage lender from claims against the property while an owner’s policy protects the homeowner against title issues. Keep in mind that the majority of lending companies require homebuyers to purchase lender’s title insurance.
If you are not certain if you have both policies or not, you may want to talk to your Arizona title company.
How to Choose a Title Company
With multiple title companies out there, choosing the right one may seem confusing. If any of your family members or friends have recently purchased property, you may want to start there. Ask them the title company they used and if they would recommend their services or not.
Another thing you can do is ask your real estate agent for suggestions. He or she has likely worked with multiple title companies in the past and may be able to recommend the right one to you.
What To Look for in a Great Title Company
Attention To Detail
Purchasing and selling property is a complicated process. There are many small details that can be overlooked. However, a reputable Arizona title company, such as Closeline Settlements, pays close attention to all the small details that can derail or delay your sale or purchase. For example, these professionals are adept at reading the fine print, ensuring that all your documentation is in order and present and address any issues they find. A thorough title search and analysis is part of your due diligence and the property closing process.
Communication Excellence
A great Arizona title company maintains clear and open communication with its customers. Not only does the company need to be able to clearly communicate what is going on with your purchase or sale, but these individuals need to be willing to keep you up to date on the process. You need to understand your role in the real estate transaction. You also need to completely understand what your loan agreement and closing documents say.
Legal Knowledge
Your Arizona title company should understand real estate law. In fact, many companies employ real estate lawyers or legal experts to ensure that they adhere to all applicable laws. These individuals also make sure they remain up to date with new regulations, even if gaining this knowledge is time-consuming. You will gain peace of mind when you know your title company employs legal professionals.
Smooth Transaction Processes
Like Closeline Settlements, your title company should make your escrow process go as smoothly as possible. They need to be accurate and efficient with all their financial duties. Your escrow transfers should be quick so that your closing occurs on time. These companies also streamline the closing process and meet key deadlines in the real estate purchasing process.
In addition, your title company should ensure that your data and computer systems are secure. Make sure the company that handles your title work and escrow should prioritize security so you are not vulnerable to breaches during closing.
Pursuit of Innovation
Today’s world is driven by innovation. AI and paperless strategies have been adopted across industries. The real estate industry has begun to pursue technological innovation. An innovative Arizona title company offers highly efficient processes that are driven by quality. For example, your title agency may provide you with electronic financial projections and market data. In addition, you may be able to design your documents. You should have access to a convenient and innovative web portal that makes your buying and selling process easy and smooth.
Before you decide to work with a title company, take a look at their online reviews. Many people provide honest reviews of their experiences and can lead you in the right direction.
Arizona Title Company
One of the first players that you have to talk to when buying a home is a title company like the Arizona Title Company. The role is to make sure that the title of the real estate is legitimately given to the home buyer. Essentially this means that they make sure the seller has the right to sell the property to a buyer.
Going through this process is a critical step, as it allows for everything to be covered and you get to have the easiest method of buying a home. And you get to know that the home you are getting is from the previous owner and isn’t a scam.
What Happens Before Issuing Title Insurance
When it comes time to insure the title there are two types, the lender’s title policy, and the owner’s title policy. Not everyone is going to purchase an owner’s title policy but here are the steps that are taken before any insurance is taken out. This protects the title company from liability down the line when they insure your title.
Perform a Title Search
The very first thing a title company is going to do is a title search. This entails looking for potential obstacles to the clean transfer of ownership. While this does mean making sure the ownership is in the right place here are the other issues that a title search covers:
- Outstanding Mortgages: Unless the previous home is owned free and clear the current homeowner will have a mortgage. This is going to need to be paid off at closing so that the title can be transferred to you. The search is going to provide the owners with the information they need to pay it off so it is settled.
- Other Existing Liens: There could be other things like a home equity line of credit or a loan to pay for solar panels. These would need to be paid off or otherwise removed before you can close.
- Unpaid Homeowners Association Dues: This can vary depending on what is written in the HOA contract. Often associations give themselves broad powers in these agreements to place a lien on and even foreclose your property as a consequence of unpaid HOA dues. The previous owner will need to deal with this before moving forward.
- Restrictions: If there is anything restricting the free transfer of ownership in a property it can cause a problem. Some examples would be a requirement to be a certain age to live in a community or belong to a certain group to join the community.
- Easements: These are agreements that, although you own the property, you are giving someone else the right to use your land for a specific purpose. These have to be cleared up before moving on.
- Leases: If the property is rented out to anyone then a title search will bring this up.
Making sure that you have all your ducks in a row can be difficult but not impossible. The Arizona title company is there to help you make sure everything goes as smoothly as possible when you decide to buy a house.
Arizona Title Company
If you’ve thought about working with an Arizona title company then you may also have heard the many myths that are around. Many people think of the myths and misconceptions about title insurance. Everything adds up when you are starting the process of buying a house and many people are not sure about title insurance. We have the most common myths around title insurance below.
While you may never need to use your title insurance it is often good to have. It keeps you protected from the unexpected.
Myth 1: Title Insurance is a Waste of Money
The biggest myth by far is the title insurance is a waste of money. After all, you just invested time and money into a title search that is supposed to reveal any potential defects in the title and give your attorney or agent time to correct them. So why would you need to purchase title insurance to cover something that was just researched and cleared?
Well, the truth is that even the most thorough title search cannot account for all the potential encumbrances on the title. There could be things not found in the title history and that can cause problems. Having this title insurance is going to protect you from any issues. And while many don’t need it, it can’t hurt to have it just in case.
Myth 2: You Don’t Need Title Insurance for New Properties
Once again, this isn’t true. Even if your home is brand new or if you are simply purchasing an empty lot, the land itself has likely changed hands a number of times. There are the same potential mistakes, lost heirs, or easement issues that can happen even if the home is new.
In addition to that, there are other issues that come along with a new property. Things like liens for contractors and subcontractors. There is also the possibility of HOA liens or other encumbrances that can affect your use of the property if not taken care of. While everything should be in order before you do anything the insurance is just there for just in case.
Myth 3: Title Insurance is an Ongoing Monthly Expense
Unlike other types of insurance, title insurance isn’t an ongoing monthly expense. See, it has to do with the way this insurance works. Most insurance policies are looking forward, as in they are protecting you against a future event. Think of things like car accidents or medical emergencies. Title insurance is covering you for things that have already happened. This is why it is a one-time payment made at the sale’s closing and it protects you for as long as you own the home.
When buying a new home there are several things to think about. Don’t let anything sneak up on you if you can help it. Reach out to one of our talented professionals to learn more and If you have any more questions about Closeline’s Arizona title company don’t hesitate to reach out to have them answered.